Bullish Dundee Precious Metals Insiders Loaded Up On US$818k Of Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Dundee Precious Metals Inc. (TSE:DPM), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Dundee Precious Metals

Dundee Precious Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President David Rae for CA$251k worth of shares, at about CA$10.02 per share. That means that an insider was happy to buy shares at above the current price of CA$8.85. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably David Rae was also the biggest seller.

Happily, we note that in the last year insiders paid CA$818k for 93.00k shares. But they sold 45.30k shares for CA$412k. Overall, Dundee Precious Metals insiders were net buyers during the last year. Their average price was about CA$8.79. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Dundee Precious Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Dundee Precious Metals Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Dundee Precious Metals. In total, insiders bought CA$510k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$1.7m worth of Dundee Precious Metals stock, about 0.1% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Dundee Precious Metals Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Dundee Precious Metals insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Dundee Precious Metals (1 doesn't sit too well with us!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.